Businesses that do not require my presence

 

Stocks

 

Income Generating Real Estate

 

Royalties

 

Acquire assets you love. If you don’t love it, you won’t take care of it.

 

The rich put luxuries last.

 

Buying a luxury on credit often causes a person to eventually resent that luxury because the debt becomes a financial burden.

 

1031 (defer capital gains) will allow better opportunity to grow your asset column.

1.Management of cash flow

 

2.Management of systems

 

3.Management of people

1.Fear

 

2.Cynicism

 

3.Laziness

 

4.Bad Habits

 

5.Arrogance

Step 1: Find a reason greater than reality: The power of spirit

 

⁃Why sacrifice social life and sleep?

 

⁃A combination of “wants” and “don’t wants”

 

Step 2: Make daily choices: The power of choice

 

⁃Our spending habits reflect who we are

 

⁃What we do with our time. Invest in education.

 

Step 3: Choose friends carefully: The power of association

 

Step 4: Master a formula and then learn a new one: The power of learning quickly

 

-You are what you study

 

-It’s not always what you know, but often what you know is old

 

-There is always another wave. People who hurry and catch a wave late are usually the ones who wipe out. Wise investors buy an investment when it’s not popular. They know their profits are made when they buy, not when they sell. They wait patiently. They do not time the market. Just like a surfer, they get in position for the next big swell.

 

Step 5: Pay yourself first: The power of self-discipline

 

-If you cannot control yourself, do not try to get rich

 

-Don’t get into large debt positions that you have to pay for. Keep your expenses low. Build up assets first.

 

-When you come up short, let the pressure build and don’t dip into your savings or investments. Use the pressure to inspire your financial genius to come up with new ways of making more money, and then pay your bills. You will have increased your ability to make more money as well as your financial intelligence.

 

-Poor people dip into their savings

 

Step 6: Pay your brokers well: The power of good advice

 

-Most people would still tip they waiter (liabilities) good even with bad service, but not their brokers (assets).

 

-Why would they help you make money if you just want to cut theirs?

 

Step 7: Be an Indian giver: The power of getting something for nothing

 

– After an investment, first focus on getting your investment back. Anything left afterward is free.

 

Step 8: Use assets to buy luxuries: The power of focus

 

Step 9: Choose heroes: The power of myth

 

-By having heroes, we tap into a tremendous source or raw genius

 

Step 10: Teach and you shall receive: The power of giving

 

-With anything (money, smiles, love, etc.) if you want it you have to give it

 

-The more you teach, the more you’l learn

1. Cash Flow
2. People (people less smart, and smarter than you)
3. Personal Time

Life does not talk to you to teach you, it pushes you around. Some let life push them around. Some get angry and push back against their boss, their job, husband or wife, not realizing it’s life that’s pushing. And few learn the lesson and move on.

 

You’re better off changing your own point of view. If you think outside sources are the problem, then you have to change them. Most people want everything else in the world to change for them. It’s much easier to change yourself.

 

The poor and the middle class work for money. The rich have money work for them.

 

Instead of admitting the truth about their feelings, people react to their feelings and fail to think. Be truthful about your emotions and use your mind and emotions in your favor, not against yourself.

 

If you don’t master the power of money, you become a slave to it.

 

Once a person stops searching for information and self-knowledge, ignorance sets in.

 

When you’re not getting paid from a job, you’re forced to use your imagination to identify an opportunity to make money.

 

Money without financial intelligence is money soon gone.

 

The larger you want your financial empire to be, the larger your foundation must be.

 

Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets. An asset puts money in my pocket. A liability takes money out of my pocket.

 

High emotions tend to lower financial intelligence.

 

Most people work for everyone but themselves. First, the owners of the company, then the government through taxes, and finally the bank that owns their mortgage.

 

Mind your own business.

 

The problem with school, is most people become what they study. The mistake is becoming what you study is that too many people forget to mind their own business and end up making someone else rich.

 

People “can’t afford to take risks” because they have no financial foundation and cling to an income as security.

 

What people think are assets will often not help them survive in a financial crisis.

 

The rich leverage corporations to make more money. Corporations pay lower taxes and are able to spend with pre-tax dollars.

 

It is not so much the lack of technical information that holds us back, but more the lack of self-confidence. It is not the smart who get ahead, but the bold.

 

People often struggle because they hold onto old ideas. Old ideas are their biggest liability. It is a liability simply because they fail to realize that while that idea or way of doing something was an asset yesterday, yesterday is gone.

 

People complain that opportunities do not come their way, so they sit there. People complain the opportunities come their way and they do not have enough money, so all they do is complain and sit there. And many people have opportunities right in front of them but failed to realize what a great opportunity they are until it is too late.

 

Financial intelligence is about having options. If opportunities are not coming your way, what can you do to improve your financial position? If an opportunity is in front of you and you have no money or the bank won’t loan to you, what else can you do to get the opportunity to work in your favor? If an opportunity fails, how can you turn it into a positive?

 

Money is not real. The more real that you think money is, the harder you will work for it. If you can grasp the idea that money is not real, you will grow richer or faster.

 

Houses that were once $100,000 were now $75,000. But instead of shopping with local real estate agents, I began shopping at the bankruptcy attorney’s office, or the courthouse steps. In these shopping places, a $75,000 house could sometimes be bought for $20,000 or less. For $2,000, which was loaned to me from a friend for 90 days for $200, I gave an attorney a cashier’s check as a down payment. While the acquisition was being processed, I ran an ad advertising a $75,000 house for only $60,000 and no money down. The phone rang hard and heavy. Prospective buyers were screened and once the property was legally mine, all the prospective buyers were allowed to look at the hose. It was a feeding frenzy. The house sold in a few minutes. I asked for a $2,500 processing fee, which they gladly handed over, and the escrow and title company took over from there. I returned the $2,000 to my friend with an additional $200, He was happy, the home buyer was happy, and the attorney was happy, and I was happy. I had sold a house for $60,000 that cost me $20,000. The $40,000 was created from money in my asset column in the form of a promissory note from the buyer. Total working time: five hours. So now that you are on your way to becoming more financially literate and skilled at reading numbers, I will show you why this is an example of money being invented.

 

I have people ask what happens in the person doesn’t pay. That does happen, and it’s good news. That $60,000 home could be taken back and re-sold for $70,000, and another $2,500 collected as a loan processing fee. It would still be a zero-down transaction in the mind of the new buyer. And the process would go on.

 

The first time I sold the house, I paid back the $2,000, so technically, I have no money in the transaction. My return on investment (ROI) is infinite. It’s an example of no money making a lot of money.

 

Those who avoid failure also avoid success.

 

Learn to assembly deals. Find opportunity that others missed, raise money, and organize smart people.

 

Work to learn, don’t work for money. Look down the road at what skills they want to acquire before choosing a specific profession and before getting stuck in the rat race.

 

Most people are one skill away from great wealth. They only need to learn and master one more skill and their income would jump exponentially. Example: A “Best-Writing Author” needs to master sales and marketing in order to become a “Best-Selling Author”.

 

We can all make a better burger than McDonalds, so why does McDonalds make more money? The reason so many talented or skilled people are broke is because they focus on perfecting their skills rather than business systems.

 

Give and you shall receive.

 

I have never met a rich person who never lost money, but I meet poor people all the time who have never lost a dime.

 

Texans have a saying, “If you’re going to go broke, go big.” & “Everyone wants to go to heaven, but nobody wants to die.”

 

There’s a big difference between hating losing and fearing losing.

 

Whenever it’s time to put up or shut up, and you’re afraid of failure, remember the Alamo. It’s not that you want to lose, but don’t be afraid of it.

 

For winners, losing inspires them. For losers, losing defeats them. It’s the biggest secret that losers don’t know. Winners aren’t afraid to lose because they know who they are.

 

Most people struggle financially because they play not to lose. They don’t play to win.

 

You must first be focused, not balanced. Any successful person at the start was not balanced, they were focused. Balanced people go nowhere.

 

Put a lot of eggs into a few baskets and FOCUS: Follow One Course Until Successful

 

Everyone has doubts created either in our heads or outside. You must ignore these doubts and analysis. Cynics never win. Cynics criticize and winners analyze.

 

Busy people are often the most lazy. And they usually stay busy to avoid something.

 

What is the cure for laziness? A little greed.

 

Instead of saying “I can’t afford it”, which shuts off your brain from thinking. Ask, “How can I afford it?” which forces you to use your brain.

 

Most importantly, “I can’t afford it” is a lie to the human spirit because the human spirit is very powerful and knows it can do anything. This lie can cause a war within you.

 

No matter what it is you want, ask yourself how you can do it. Our world progresses because we all nautically want better.

 

Pay yourself (with assets) before paying others. If you pay others first and don’t have anything left over, you won’t be mad at yourself. But if you pay yourself first before others, you will work harder to pay the others because they won’t be as kind to you as you would be to yourself.

 

What I know makes me money. What I don’t know loses me money.

 

When you know you’re ignorant in a subject, educate yourself.

 

Intelligence + Arrogance = Ignorance

 

Intelligent people welcome new ideas, for the new ideas can add to the synergy of other accumulated ideas.

 

Don’t invest money without investing in your mind first. If you want to fly an airplane, take lessons first.

 

Misc.

 

• Stop doing what you’re doing
• Look for new ideas
• Find someone who has done what you want to do
• Take classes, read, and attend seminars
• Make lots of offers (always use an escape clause)
• Shop for bargains in all markets
• Look in the right places
• Look for people who want to buy first. Then look for someone who wants to sell.
• Think big (volume)
• Learn from history
• Action always beats inaction